distribution of tasks. Clearly, these projects were procured with great consciousness of the impor- tance of time, cost and quality which are the cornerstones of project management.
There are numerous examples of the achieve- ments of project management throughout history;
the Medieval cathedrals representing the dominance of faith over territories, the architecture of the eighteenth century representing classic perfection, or the great triumphs of urban planning in the late nineteenth century representing the steady increase of engineering sophistication. It was, however, the great wars in the twentieth century which gave new impetus to the development of scientific ways of organizing and undertaking complex operations.
New project planning techniques emerged as well as new approaches to general management. Henry Gantt’s bar chart used for production scheduling at the Frankfort arsenal in 1917 became an essential tool for project management and it is still widely used in an essentially unaltered form. Critical path analysis developed by Wright in 1918 to show the relationships between activities is another example of a technique which plays an essential role in modern management.1
Although many of the early codifications of prin- ciples and practices were developed in the first half of the twentieth century, project management in its modern form extends back only thirty to forty years.
The project management processes and techniques used in the Manhattan Atom Bomb project
(1940–1945), became the model for the management of later projects such as the Polaris Missiles
(1955–1960) and the Apollo Moon Programme (1960–1970). The evolution of project management and its new role as a defined professional discipline in its own right is now universally apparent as new roads or bridges open, as major buildings rise, as new computer systems come on line or as spectacu- lar shopping centres and urban projects unfold. The use of its principles and practices can assist in the elimination of the need to rely on luck to attain a successful outcome for a project.
PROJECT MANAGEMENT TECHNIQUES AND PRACTICES
The Code of Practice for Project Management of the Chartered Institute of Building2defines project management as:
the overall planning, co-ordination and control of a project from inception to completion aimed at meeting a Client’s requirements in order to produce a functionally and financially viable project that will be completed on time within authorised cost and to the required quality standards.
In other words, a ‘project’ is a process of creating a specific result; a means to an end. Project manage- ment deals with the co-ordination and integration of the process. A project can be further defined as a non-routine activity; a separate undertaking having time, cost, quality constraints and objectives. A project usually involves multiple disciplines in new and complex activities with clear start and end dates. It involves greater risks than operations which are simply ‘business as usual’ and can become an agent of change.
Paralleling the method outlined in previous chapters for urban design, the life cycle of a specific undertaking in project management terms can be subdivided into four major stages, namely:
‘Project Definition Stage’, ‘Project Planning Stage’,
‘Project Implementation Stage’ and ‘Project Closure Stage’ (Figure 8.1). These stages and the activities that take place at each stage are described below.
PROJECT DEFINITION STAGE Most projects emerge from a strategic objective or investment aim established by an individual or an organization. In project management terms the individual or the organization responsible for formu- lating the preliminary project concepts is referred to as the client or project sponsor. The client is responsible for defining the business requirements;
justifying funding; setting success criteria; reviewing
progress and project environment; and ensuring that the project benefits are realized.
At the early stages of a project the client de- velops a set of basic assumptions in answer to the following questions:
• Why is the project being considered?
• What are the benefits to the business or the organization?
• What are the minimum achievements which must be attained?
• What are the constraints?
• What are the success criteria?
• What are the relative priorities in terms of time, cost, and quality/performance?
Once the strategic or investment aims and project objectives are understood, the activities that are necessary to bring about the implementation of the project can be determined. With this in mind, the first step in the project definition stage is for the client to establish a clear statement of purpose. In project management terms this strategy document is known as client requirements definition (CRD). The definition of the client’s requirements is the client’s formal statement of the aims of the particular enter- prise and the project objectives. It provides an outline definition of the project scope, and more importantly, defines the essential requirements to be met. The definition of the client’s requirements outlines the reasons for the project.
Once a clear statement of the client’s require- ments is formulated, the client has to focus on implementing the project. Depending on the size of the venture, it is usually at this stage that a project manager is appointed with the specific responsibil- ity of establishing the route which best meets the client’s aspirations, within the constraints that are set. The project manager will discuss with the client the available options and initiate feasibility studies to determine the best route to be adopted. The Code of Practice for Project Management emphasizes that the project manager, both acting on behalf of, and
representing, the client has the duty of providing a cost-effective and independent service, selecting, correlating, integrating and managing different dis- ciplines and expertise, to satisfy the objectives and provisions of the project brief from inception to completion. The services provided must be to the client’s satisfaction, safeguard his/her interests at all times, and, where possible, give consideration to the needs of the eventual user of the completed project.3The local community may be the eventual user or purchaser of the project. Ways must be found to involve the community positively in the
Figure 8.1Project stages.
Project Definition:
Strategy Documents Technical Requirements Analysis, Research, Considerations
Organization & Control
Project Planning:
Work Breakdown Structure Project Network Project Schedule Master Plan
Cost Plan
Project Closure Completion Procedures
Handover Procedures Closure Plan
Training Post-Implementation Reviews
Project Implementation:
Control Procedures Project Reviews Product Reviews Change Control
development of a project, particularly if they are likely to be the users. This issue was discussed in earlier chapters.
In the field of urban design the project manager may, of course, be the person leading the design work, although much will depend on the nature of the project or the client’s available expertise and interests. The project manager, who may be
educated in any of a number of disciplines, has the continuous duty of exercising control over project time, cost and performance. To achieve such control it is important to produce a project brief, referred to in project management terms as the Project Requirements Definition (PRD) document.
The Project Requirements Definition is the full definition of what the project is about. It includes the items shown in Figures 8.2 and 8.3. The items in Figure 8.2 follow directly from the client’s requirements while those in Figure 8.3 are concerned primarily with the definition of a successful outcome.
This vital strategy document is used by the project manager to obtain the client’s decision and full authorization for the project. It provides a contract between the client and the project manager and forms the baseline for changes. It provides the starting point for developing a detail project plan and provides a reference point for review and audits at later stages of the project. The term ‘Project Requirements Definition’ is used in business jargon; in many ways it is equivalent to the agreed design brief to which the urban designer works. The rigour of the design brief and programme in urban design would be greatly enhanced by the inclusion of measurable criteria for determining a successful outcome.
Figure 8.2Client
requirements. • Client’s aims, performance specifications and project description
• Project’s business priority or strategic objective
• Project objectives (time, cost and quality) and their relative priorities
• Constraints and success criteria
• Project scope
• Project deliverables
• Functional requirements, to meet the performance specifications
• Acceptance criteria of end product
• Project identification and coding
• Assumptions required to deliver end product
Figure 8.3Project requirements.
Figure 8.4Relationship between scope for change and cost of change.
Amount of control
As project development progresses, the control over project outcome decreases and the cost of saving time, or removing errors, increases. The value of early definition and the relationship between scope for change and the cost of change, set against the timescale of a project, is described graphically in Figure 8.4.
It is useful, at this stage, to undertake a thorough analysis of project risks. The technique for identify- ing and quantifying aspects of the project that could lead to losses is known as Risk Analysis. Risk can be defined as exposure to adverse consequences. Risks exist in all forms of project and are normally of a physical or financial character. Physical risks relate to loss of, or damage to, goods and property, and financial risk relates to loss of money. Most projects, including those in urban design, are business ventures; the risks are therefore concerned with financial losses rather than physical hazards. Where physical risks are involved the project manager should consider taking out insurance cover. The analysis of risk gives an increased understanding of the project. It allows the formulation of more realis- tic plans, in terms of both cost estimates and timescales. It identifies the party best able to handle a risk and leads to the use of the most suitable form of procurement strategy. It also allows the assess- ment of contingencies that actually reflect the risk.
Risk may be internal or external to the project.
Some examples of internal risk are shown in Figure 8.5. External risks are shown in Figure 8.6.
It is helpful to identify both the internal and external risks and their potential impact on the project objectives. External risks are always much harder to deal with than internal ones. A project manager can usually control internal risks, but can only react to external ones. Where risks can be identified, the project manager can take action to lessen their impact on the project. This can be done firstly, by identifying and assessing risk;
secondly, by managing the risk to minimize the adverse effects, and thirdly, by monitoring and evaluating the risks. Risk assessment helps in
quantifying or ranking the risks according to how likely they are to arise and in predicting their effect.
This can be done by producing a risk assessment table which not only identifies the risks most likely to occur, but also outlines the actions which will contain or eliminate them (see Figure 8.7).
As most risks are ultimately measured in financial terms, the techniques usually used for assessing risks are of a monetary nature.4They include:
• break-even analysis;
• cost–benefit analysis;
• multiple criteria analysis.
Some of these techniques have been described in earlier chapters. Having analysed risks, it is wise to prepare strategies that minimize the adverse effects on the project if the risks materialize. This is known as risk management.
Figure 8.5Internal risks.
Figure 8.6External risks.
• The project goal: it may be too ambitious
• The project plan: the activities may be poorly perceived and the interactions not well understood
• The project organization: it may be poorly staffed and managed badly
• The project methods: they may fail to provide adequate controls
• The client: support can be withdrawn or interference with the running of the project can take place
• The market environment: market preferences may change and make the project less attractive
• The supporting links: suppliers can be unable to deliver according to schedule or may be affected by industrial disputes
• The competition: competitors may instigate rival bids or projects in adjacent areas
Some examples of risk management strategies that can be developed are shown in Figure 8.8.
It is good practice to closely monitor activities which have a high risk classification. Special atten- tion should be given to exceptional issues, milestones and target achievements. Some monitor- ing techniques are described later in this chapter.
Risk analysis is an iterative process. Therefore, risks are reassessed at least once during the project’s life cycle when changes to the likelihood or the serious- ness of risks might require amendments to the risk analysis and contingency plans.
The project definition stage provides the frame- work that enables the effective execution of the
project. Issues such as the project brief, organiza- tion, control systems, analysis of risk and project interfaces are established. Time and money spent, at this stage, will be repaid in the overall success of the project.
PROJECT PLANNING STAGE The objective of the project planning stage is to translate the overall project aims into a series of identifiable activities which can be set out in a logical way that will achieve the desired end.
Project requirements such as schedules, deadlines, resources, as well as budget and cost constraints, have to be clearly defined. The ultimate objective of the planning stage is to produce a total project plan. To do this it is necessary to develop in a methodical way the key elements that form the project plan; these are the ‘work breakdown struc- ture’, the ‘project network’, the ‘project schedule’, and the ‘cost plan’.
The work breakdown structure is a list of all major activities and sub-activities that form the project. It has built-in levels to allow a clear identifi- cation of the actual work that must be performed to meet the project requirements. Each major activity is divided into sub-activities and sub-sub-activities helping in this way to completely define the project scope. The work breakdown structure assists in relating all the elements of work to each other and
Figure 8.7Risk analysis table.
Figure 8.8Risk
management strategies. • Addition of contingencies; by adding extra budget allocations to cover risks if they arise
• Avoidance of risk; by passing on risks to sub-contractors or the client
• Reduction of risk; by including testing and other project activities that will discover technical risks before the project is completed
• Insurance against risk; by taking out insurance if the risks have a known statistical nature
Risk Description Risk Assessment Cost Implications Risk Proposed Management Class of High Risk
High Average Low High Average Low
Planning permission Yes Yes 5 Contract experienced
refused planner
Construction delays Yes Yes 6 Seek compensation
clause within contract
Construction Yes Yes 2 Ensure insurance
accidents policies exist
Unforeseen ground Yes Yes 3 Undertake adequate
conditions survey of ground
conditions
to the project. It also helps in defining work packages, establishing cost breakdown structures, organizational breakdown structures and project estimates, permitting the development of the project network and programme. The work break- down structure should specify clear deliverables for each activity. In practice, when all the activities identified in the work breakdown structure are finished, the project is completed. The work break- down structure assists in establishing in detail
‘what’ has to be achieved in terms of meeting the project requirements. It also helps in identifying
‘who’ is accountable for achieving it, ‘how’ it is going to be achieved in terms of detailed action and
‘when’ it is going to be achieved in terms of milestones and target dates (see Figure 8.9).
The critical path is one of the techniques most commonly used in building a project network. Once all the detailed activities have been identified, it is possible to create a network which shows the dependencies of activities and work packages. A critical path shows the sequence of the project activities and how they depend on each other. It also reveals those activities which are critical for completing the project on time. This sequence of activities, known as the critical path, determines how long the project will take to complete. Any delays to the activities on the critical path will delay the overall completion of the project.
With simple projects it is possible to find the critical path by ascertaining the duration of the activities that form the project and the sequential path that these activities follow. With more complex projects, project management software is used to undertake these arithmetic calculations. By networking the activities of the project it is possible to have a clearer understanding of the critical activi- ties which can constrain the project’s success. It also enables the project duration to be optimized by focusing on the activities that form the critical path, as it is these that can affect the progress of the project (see Figure 8.10).
Once the work breakdown structure has been defined and the network has been established, it is possible create the project schedule. The project schedule contains key information regarding the viability of completing the work in the given timescales with the given resources. It identifies key events which, if late, could delay the programme and the project milestones or those points against which progress can be monitored.
Gantt charts or bar charts are particularly useful for displaying a schedule of project activities in a cascading form, whilst showing in a graphical way their durations and their start and finish dates (Figure 8.11). Gantt charts are also useful for illus- trating who is responsible for given activities and for displaying key events and project milestones. They
Figure 8.9Work breakdown structure.
can be used as a powerful communication tool for improving the understanding of a project and for providing management focus. Gantt charts are used as project master programmes as they permit the organization of even the most complex project in manageable and measurable chunks of activities.
The project plan needs to be complemented by a cost plan. The objective of a cost plan is to provide the best estimate of the final cost of the project. It assists in planning when money will be spent and
on what. It is the basis of the final budget and the limit of expenditure. The cost plan should include a cash flow plan and payment profile based on the master programme. It should allow for contingen- cies, professional fees, direct costs and other opera- tional costs. It also aids in setting up detailed cost control procedures for all stages of the project.
In planning a project it is important to realize that the involvement of the project team in the planning process is as important as the plan
Figure 8.10 Critical path diagram.
Figure 8.11 Gantt chart for a building project.
produced. John Harvey-Jones, recollecting the experiences of a UK firm and a Japanese firm each charged with the responsibility of constructing chemical facilities for ICI of similar size and complexity, recounts that the UK firm’s construc- tion had reached the roof at eaves level before the Japanese team began site construction work. Yet, the Japanese team handed over a fully operational plant before the UK team finished. While the UK team was busily building the Japanese were still planning. A possible explanation of what was happening can be related to the planning system of
‘Ringi’ used by the Japanese.5In this system, a proposal is passed around the responsible team, each member of the team being free to amend any part of the proposal. Every time the proposal is amended it is recirculated around the whole team, with each still able to amend in each iteration. The proposal is not finally adopted until every member of the team is able to subscribe fully to the proposal. When it is finally adopted, each is committed fully to its implementation.
Whatever implementation system is used, it is clear that effective teams lead to successful projects.
Although project management is strongly associated with control systems, project management is also about integrating a group of people, gaining their commitment and motivating them towards clearly established goals. The project team, on the other hand, should be geared towards supporting the project manager in carrying out his/her responsibili- ties. For a project team to function properly, it is necessary that the project team concept is conveyed to all concerned. Clearly defined and measurable project objectives, as well as clearly identified roles and responsibilities of each team member, provide the formula for a successful team.
Team members are often unaware of how their contributions affect the project and on many occasions team members tend to become defensive and keep to themselves any problems they may have with the project. They then solve their own problems in an independent way. This can be
avoided by conveying a common understanding of the project and ensuring that the team members are aware of the inter-relationship between all tasks and activities. The use of the work breakdown structure, the project network and critical path as communica- tions tools can illuminate everyone’s contribution to the project objectives. It is wise to promote teamwork by involving the project team in problem solving and brainstorming, undertaking social activi- ties, encouraging feedback within the team, carrying out regular performance reviews of all team members and developing the team through team- building exercises. The promotion of a working environment which encourages an interchange of ideas and shared responsibility will ultimately benefit the project.
It is recognized above that setting clear objec- tives is the first step in ensuring that the project team operates as an effective and focused unit.
Objectives should therefore be realistic, challenging, worthwhile, agreed and written down. The acronym SMART is used to describe an approach to objective setting. It is used to ensure that objectives are properly set. SMART stands for: specific, measur- able, achievable, relevant (to the project objective), and timed (with clear timescales and deadlines). A high level of commitment is best achieved when all members of the team are involved in the setting of clear and measurable objectives.
To ensure that all the details concerning the project and key documentation are kept together it is normal practice to create a project handbook.
The project handbook provides a central point of reference for up-to-date project documentation and should be accessible to any person authorized by the project manager. All details concerning the project should be maintained in the project handbook, properly organized into relevant sections.
Some of the sections that a project handbook should include are shown in Figure 8.12. The project handbook should be established at the beginning of every project and should be kept up- to-date throughout a project’s life cycle.6